The amount of any earned income credit otherwise refundable to a taxpayer may be reduced by that person’s federal offsets. All or part of the overpayment shown on Form 1040 may be used (offset) to pay past-due federal offsets. Offsets for federal taxes are made by the IRS and all other offsets are made by the Treasury Department's Financial Management Service (FMS). The following are examples of offsets and the agencies that collect them: